Joint Legislative Budget Committee Takes Aim at Hobbs’ Fiscal Missteps

By Jonathan Eberle |

The Joint Legislative Budget Committee (JLBC), chaired by Representative David Livingston (R-28), convened on Thursday to tackle a critical financial crisis within Governor Katie Hobbs’ administration. Central to the discussion was the Department of Child Safety’s (DCS) Congregate Care program, which is reportedly on the verge of financial collapse.

In response to the situation, the JLBC instructed DCS to utilize its current budget to sustain essential services for at-risk children without resorting to additional taxpayer funding. Chairman Livingston criticized Governor Hobbs’ fiscal strategy, asserting that it has led to a series of financial emergencies.

“Governor Hobbs’s repeated failures to manage the budget responsibly have pushed agencies into crisis after crisis. Her administration’s approach is to overspend, ignore reality, and then demand a last-minute bailout. That’s not leadership—that’s recklessness,” Livingston remarked.

Republican legislators contended that the Governor’s office failed to disclose available federal funds that could have stabilized the Congregate Care program. Allegedly, those funds were diverted to the Kinship Support Services initiative, which had not previously received state funding.

“That decision by the Governor is stunning,” argued Livingston. “Instead of prioritizing the program on the brink of insolvency, she chose to send federal dollars elsewhere. This raises serious questions about her administration’s priorities and decision-making.”

Beyond the issues plaguing DCS, lawmakers expressed concern over the Developmental Disabilities (DDD) program, which they claim will run out of funds by April. In light of these challenges, Speaker of the House Steve Montenegro announced the establishment of a House Ad Hoc Committee on Executive Budget Mismanagement to investigate what Republicans deem a pattern of fiscal irresponsibility under Hobbs’ leadership.

“We care deeply about the children in DCS’ care. That’s why we acted quickly today,” Livingston emphasized. “The Legislature will not reward fiscal irresponsibility by throwing more taxpayer dollars at a crisis of the Governor’s making. Moving forward, the Governor must be more transparent and accountable about her agency budgets.”

As the situation unfolds, further discussions are anticipated as lawmakers seek clarity regarding the state’s financial health and agency funding priorities.